CITIZENS Financial Group, the US bank in which Bank of Ireland has a 23.5 per cent stake, has sold $5 billion (£3.024 billion), of third-party mortgage servicing rights for $89 million. The deal also involves the purchaser, Dovenmuehle Mortgage Inc, taking over the servicing of the entire portfolio of mortgage loans owned by Citizens, currently amounting to $3.2 billion.
Mr Paul D'Alton, Bank of Ireland group chief financial officer, described the deal as a "sort of economic asset management decision" No firm overall figures are available but the outcome would be positive, he added. Some of this would come through the bank's profit and loss account this year and subsequently there would be an adjustment to the fair value of the assets.
The deal, he said, would not be material to the bank, noting that the outcome would be positive even after severance costs.